Binance.US, an independent subsidiary of crypto exchange Binance, informed customers in a June 22 update that their system remains fully operational and that requests for US dollar withdrawals are expected to go back to their normal five-business-day turnaround.
Earlier on June 9, the exchange suspended dollar deposits and informed customers of an incoming pause to fiat withdrawal channels due to a legal battle with the Securities and Exchange Commission. At that time, they also warned that their banking partners were preparing to suspend the fiat withdrawal channels from June 13, however, that has not happened yet.
In the latest announcement, Binance.US encouraged customers who have any failed withdrawal requests to resubmit their request because their system remains fully operational but warned users to do so as soon as possible as it will not last long.
“While USD withdrawals remain fully operational, we encourage you to use, withdraw, or convert your USD to a stablecoin to continue crypto-to-crypto trading, as we expect our banking partners to discontinue USD withdrawals in the near future.”
Binance and Binance.US are in serious legal trouble. On June 5, the US Securities and Exchange Commission filed a lawsuit against Binance with a total of 13 allegations. One of the allegations is that Binance and Binance.US mixed customer deposits and company funds and then moved them to another company that was run by its founder and CEO Changpeng Zhao.
Another allegation is that Binance.US conducted money laundering transactions through a secret Market Maker (MM) called Sigma Chain, also owned by CZ. Thereby, the SEC filed a court application to freeze assets of Binance.US. However, Binance then reached an agreement with the SEC to avoid freezing of US assets.